Fairbank Investment Management Limited

Item 5 - Fees & Compensation

The fee schedule for the management of segregated portfolios is described below. The fees are
not negotiable and not refundable.
Segregated Portfolio Fees
(% of portfolio value)

     •   1.25% on the first C$2 million
     •   1.00% on the next C$3 million
     •   0.75% on the next C$5 million
     •   0.50% on the balance

Segregated portfolio clients are billed semi-annually in arrears. Our clients pre-authorize us
(FIML) to instruct the custodians to deduct the fees directly from their (client) accounts. The
fees for assets that are not managed for a full semi-annual period are prorated.

Additional Fees & Expenses
Clients will also incur brokerage and other transaction costs that are payable to third parties.
Depending on the type of account, there may be additional third-party expenses for custodial
fees, wire transfer and electronic fees and other expenses incurred in the course of the
investment and administrative activity associated with the particular client account (portfolio).

In the future, Fairbank may establish and/or provide investment supervisory services to other
collective investment vehicles, including limited partnerships, limited liability companies, and
business or investment trusts for investors. If this occurs, we reserve the right to establish fee
scales that differ from those described above.

Item 7 - Types of Clients

Fairbank provides investment management advice through segregated client portfolios for:
     • Individual clients;
     • Trusts, estates and charitable organizations;
     • Corporations including public and private operating businesses, pension plans,
         endowments and family offices.

For segregated client portfolios, we tailor the investment services to the individual needs of the
client. Examples would include adjusting our standard investment guidelines to accommodate
client specific mandates or holdings.

The minimum capital required to open a segregated portfolio is C$2 million, which we can
waive in our discretion.

We intend to remain a small firm and may periodically take measures to control our growth. If,
as and when we elect not to accept new clients, we shall continue to receive deposits from
existing clients. This decision shall be reviewed annually.